Scholar Rock (NASDAQ:SRRK) Shares Up 9% - What's Next?

Key Points

• Scholar Rock's stock price surged 9% on Monday, reaching highs of $32.94 before closing at $33.62, although trading volume decreased significantly compared to its average.
• Analysts have a consensus rating of "Buy" for Scholar Rock with an average price target of $46.20, indicating optimism for the company's growth despite recent earnings underperformance.
• Several hedge funds showed increased interest in Scholar Rock, with 91.08% of the stock owned by institutional investors, suggesting strong backing for the company's prospects.

Scholar Rock Holding Corporation (NASDAQ:SRRK - Get Free Report) shares rose 9% on Monday . The company traded as high as $32.94 and last traded at $33.62. Approximately 831,242 shares changed hands during mid-day trading, a decline of 37% from the average daily volume of 1,324,062 shares. The stock had previously closed at $30.84.

Wall Street Analysts Forecast Growth

SRRK has been the topic of a number of research reports. Wedbush reiterated an "outperform" rating and issued a $50.00 target price on shares of Scholar Rock in a report on Wednesday, June 18th. Leerink Partners initiated coverage on Scholar Rock in a report on Monday, September 15th. They issued an "outperform" rating and a $51.00 target price on the stock. BMO Capital Markets dropped their target price on Scholar Rock from $57.00 to $45.00 and set an "outperform" rating on the stock in a report on Thursday, August 7th. Barclays began coverage on Scholar Rock in a report on Wednesday, September 17th. They issued an "overweight" rating and a $45.00 target price on the stock. Finally, Leerink Partnrs upgraded Scholar Rock to a "strong-buy" rating in a report on Monday, September 15th. Three equities research analysts have rated the stock with a Strong Buy rating and ten have issued a Buy rating to the company. Based on data from MarketBeat, Scholar Rock presently has a consensus rating of "Buy" and a consensus price target of $45.60.

Scholar Rock Stock Up 0.8%

The company has a quick ratio of 6.33, a current ratio of 6.33 and a debt-to-equity ratio of 0.21. The company has a market capitalization of $3.16 billion, a P/E ratio of -11.28 and a beta of 0.36. The firm has a 50-day moving average price of $34.57 and a two-hundred day moving average price of $33.05.

Scholar Rock (NASDAQ:SRRK - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported ($0.98) earnings per share for the quarter, missing the consensus estimate of ($0.66) by ($0.32). During the same quarter in the prior year, the company earned ($0.60) earnings per share. Equities research analysts anticipate that Scholar Rock Holding Corporation will post -2.42 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Mo Qatanani sold 24,066 shares of the firm's stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $34.44, for a total value of $828,833.04. Following the completion of the transaction, the insider directly owned 115,495 shares of the company's stock, valued at $3,977,647.80. This trade represents a 17.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Katie Peng sold 1,006 shares of the firm's stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $32.53, for a total value of $32,725.18. Following the completion of the transaction, the director directly owned 33,914 shares of the company's stock, valued at approximately $1,103,222.42. This trade represents a 2.88% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 39,386 shares of company stock valued at $1,413,748 over the last ninety days. 13.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. CWM LLC lifted its position in Scholar Rock by 152.8% in the first quarter. CWM LLC now owns 996 shares of the company's stock worth $32,000 after purchasing an additional 602 shares during the period. Federated Hermes Inc. bought a new position in Scholar Rock in the first quarter worth $71,000. GF Fund Management CO. LTD. raised its stake in Scholar Rock by 21.9% during the first quarter. GF Fund Management CO. LTD. now owns 2,396 shares of the company's stock worth $77,000 after acquiring an additional 430 shares in the last quarter. Strs Ohio acquired a new position in Scholar Rock during the first quarter worth $77,000. Finally, Elevation Point Wealth Partners LLC acquired a new position in Scholar Rock during the second quarter worth $94,000. 91.08% of the stock is owned by institutional investors.

Scholar Rock Company Profile

Scholar Rock Holding Corporation, a biopharmaceutical company, focuses on the discovery, development, and delivery of medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. The company develops Apitegromab, an inhibitor of the activation of myostatin that is in Phase 3 clinical trial for the treatment of spinal muscular atrophy; and SRK-181, which has completed Phase 1 clinical trials for the treatment of cancers that are resistant to checkpoint inhibitor therapies, such as anti-PD-1 or anti-PD-L1 antibody therapies.